The typical money manager uses a “risk based” approach to decide what portfolio allocation they will recommend for a client investor. Risk Based Approach: The money manager gives the client a “risk questionnaire” to fill out. The goal of this questionnaire is to assess the client’s “risk tolerance.” By inputting the risk tolerance and age…
Author: Wyatt
The protégé to Milton Friedman and great economist Thomas Sowell is a personal hero of mine. One of his books Economic Facts and Fallacies is the inspiration for a series of posts I will be writing on this blog titled Myths & Fallacies. My posts will be economically related, but will focus specifically on investing,…